Tag Archives: loan

Clear Your Debt, Clear Your Mind

Personal Loan

Personal LoanOnce you have decided to apply for a loan, you are taking on the responsibility of paying it back. After all, you are setting up a good record, so you can apply for small personal loans in the future.

Here are a few pointers to help you pay back that loan:

If You Fail, Connect

If you fail to pay on time, make sure you communicate with the loan company. Let them know about your current circumstances and the date you plan to pay the amount. Ask for possible ways to process payment with little penalty as possible. Keeping them informed might put the odds in your favour.

Create a Payment Plan

When you create your monthly budget, make sure you add the amount needed to pay off small personal loans. Avoid paying just the interest or the minimum. At the rate you are going, you won’t be able to get out of the debt and might even end up paying twice the amount of the original loan. Better that you suffer in the short time of your cost-cutting months than extending it for years with an unpaid loan.

Stick to One

With many private and online loaning companies that make your loan processing faster and easier, looking for other lending sources can pile all your debts together. If you already have a bank handling your mortgage, car financing and other debts, you’re already well covered. Pay off your first debt then have them consider you for a new loan. You will be surprised at the packages they can offer you once you have cleared former debts.

These simple pointers will definitely assist you in clearing your loans in no time. Remember, smart financial planning is all you need to keep track of your debt.

Your Ticket to Cash: What to Bring When You Apply for a Car Title Loan

title loan in Taylorsville

title loan in TaylorsvilleCar title loans are a financing option where you can offer your car as collateral in place of quick cash. Most title loan Taylorsville lenders offer, for example, won’t require credit checks and applications are often quick and trouble-free.

But, you’ll still need to provide some crucial document, and these may be different from one lender to another. Normally, however, you have to submit the following:

Identification Requirements

Make sure to bring your driver’s license, as well as you Social Security number for easy identification purposes. In most cases, if you legally own a car but don’t have a license yet, you can bring your valid passport, ID issued by your state, or a military card.

Proof of Car Ownership

Don’t forget to present your car’s title and registration as proof of ownership. You’ll also have to show proof of car insurance, so the lender will be at ease if ever your car gets damaged or lost during the loan period. If your car was under a released lien prior to you applying for a title loan, you should also show release documents from the holder of the previous lien.

Proof of Financial Stability

Lenders normally require you to provide one to four weeks of pay slips as proof of regular income. If you’re self-employed, you must provide tax records from one to three years prior, bank statements, your business’s financial statements. If you’re unemployed but obtain regular funds from Social Security or other financial aid, you can furnish statements from Social Security or the Department of Social Services. If you’re retired, you can provide your retirement account, Social Security, or pension statements.

Reference Requirements

Most lenders will require a minimum of two references, one professional and one personal, but some may require four to five. Include also your references’ complete names, addresses, contact numbers, and your relationship to them.

Proof of Residency

Since car title loans are not available in every state, you should prove that you legally reside in the state where they are legally available, as this helps lenders verify your identity. They may also require you to submit a recent phone or utility bill, as well as the deed to your home, or a statement or lease from your landlord if you’re renting.

Mortgage Loan Face-Off: Conventional Loans vs. Government Backed Loans

Loans

LoansGovernment backed loans and conventional loans can significantly help you in finally getting your own home. But, which one is the best home loan for you? Here are their benefits and drawbacks, according to Direct Mortgage Loans.

What is a Conventional Loan?

A conventional loan mortgage is a loan that isn’t government-insured, which means lenders shoulder the risk if you default on your loan. It can either be conforming or non-conforming. These types of loans come with varying terms and requirements and can offer adjustable or fixed interest rates.

The biggest benefit of conventional loans is that they are much easier and faster to process and can build home equity quicker since their down payments are generally higher. On the other hand, you’ll need a stellar credit history to obtain a low interest rate and you may be required to shell out a down payment of up to 20%.

What is a Government Back Loan?

Government backed loans such as the Veterans Affair (VA) loan or Federal Housing Administration (FHA) loan, are either partially or fully insured by the federal government. With these loan types, the government guarantees lenders that it will reimburse some or the full loan amount to lenders if a borrower defaults on a loan. These mortgage loans are ideal for those who have a less than stellar credit history and are having difficulty qualifying for conventional loans.

When compared to conventional loan mortgage packages, government backed mortgages don’t require you to have a perfect credit history and offer down payments as low as 3.5%. But, they can come with higher interest rates and a strict requirement to get mortgage insurance.

Which Loan is Right For You?

Both loans can make perfect sense depending on your personal circumstances. When you factor in the mortgage insurance for government backed loans, it can still come out as more affordable when you obtain a low mortgage rate or lender credit. But, if you’re averse to paying mortgage insurance, you can make peace with a higher interest rate on a conventional mortgage. Consult with a reputable lender to check if you can qualify for both loan types and to determine the best deal for you.